Model Customs Collectorate (MCC), Port Qasim has revised the customs values of various forms of iron and steel scrap under section 25-A of the Customs Act 1969.
According to details, the customs values of said goods were earlier determined vide valuation ruling 767 issued in 2015. However the Directorate General Customs Valuation (DGCV) in December 2015 withdrew the said valuation ruling with the opinion that henceforth the assessment of re-rollable scrap and compressor scrap shall be made by the clearance Collectorate in terms of section 25 of the Customs Act 1969. Consequently, the Collectorate has fixed the customs values in January, 2016, January 2017 and October 2017 respectively.
The MCC, Port Qasim in order to check the current prices of said commodities prevailing in the international market vis-a-vis the values determined earlier, an exercise to revise the current customs values was carried out.
At the time of determination of the values, three meetings were convened with the stakeholders, who were conveyed that the international prices of the ferrous scrap had been increasing during last three months and the same trend was also witnessed in transactional values based on letter of credits pertaining to clearance made through WeBOC.
Therefore, the customs values of ferrous scrap needed upward revision. However, some of the representatives of importers were of the view that the transactional values based on letter of credit should be accepted as customs values. However, the suggestion was found infeasible, due to lack of legal requirements as stipulated in section 25(1) of the Customs Act, 1969. Later, the customs values of said commodities are revised under section 25-A of the Customs Act 1969 after the consultation and mutual agreement with the stakeholders.
Iron and steel re-meltable scrap (shredded scrap, HMS scrap, press bundle scrap etc) shall now be assessed that US$330 per metric ton while iron and steel re-rollable scrap at US$395 per metric ton and compressor scrap at US$545 per metric ton.